Iraq opens doors to US oil partnerships, aiming for gas self-sufficiency by 2028
Shafaq News/On Thursday, Iraqi Prime Minister Mohammed Shia Al-Sudani expressed thecountry's readiness to partner with American companies in the oil industry.
Thisdeclaration was made during a dialogue session in New York, hosted by theAmerican Chamber of Commerce and Al-Monitor, attended by investors, businessleaders, representatives from American companies, and the Iraq-US BusinessCouncil.
During thesession, Al-Sudani highlighted the government's initiation of several rapidprojects, including a significant agreement with Total aimed at increasing oilproduction and utilizing associated gas at approximately 600 million standardcubic feet. He noted, “We have launched supplements for the fifth and sixthlicensing rounds, which have resulted in contracts for oil production and gasinvestment.”
Al-Sudaniprojected that Iraq would achieve self-sufficiency in gas by 2028, alongsidethe activation of oil derivative projects, such as the strategic Karbalarefinery, which has a production capacity of 140,000 barrels per day. He alsomentioned the rehabilitation of the Baiji refinery, which was completelydestroyed during the battles to liberate the area, stating, “This refinery hasa production capacity of 150,000 barrels per day.”
Furthermore,the Prime Minister announced, “We have ended petroleum derivatives imports andwill stop importing gasoline at the beginning of next year after completing theFCC project in Basra.” He emphasized Iraq's vision to transform 40% of exportedoil into downstream industries, which he believes will provide greater benefitsthan selling crude oil.
Turning tothe banking sector, Al-Sudani remarked that development cannot be achievedwithout “a solid banking system” adhering to international standards. He notedthat “95% of financial transfers in Iraqi trade are conducted through trustedbanks.” He confirmed the currency sale window will close at the end of 2024 andhighlighted that “the Anti-Money Laundering Office at the Central Bank isfunctioning effectively.”
Al-Sudanistated, “The government has contracted Ernst & Young to reform the statebanking sector, boosting citizens' trust in banks and expanding financialinclusion.”
He affirmedthe independence of the Central Bank, asserting, “It enjoys full independenceand exercises its authority with complete professionalism,” and expressed plansto establish a new bank using the latest technologies.
Finally,Al-Sudani extended an invitation to all companies engaged in electronicpayments to operate in Iraq, assuring them of all necessary facilitation.
“We havedeveloped a plan to improve infrastructure with allocations of up to $83billion,” he concluded.
